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Making Warranty Management a Win-Win with Dynamics 365: How Manufacturers Can Track Warranty Terms, Claims, and Work Orders
07 Jul, 2025
At its core, a warranty is really a conversation between a manufacturer and their customers.
On the manufacturer’s side:
We care about our products, and we care about you. We want to make sure you get the high-quality products and service you expect from us – and that we expect from ourselves. So we’re putting our money where our mouth is.
On the customer’s side:
I trust your company and your products. If something comes up, I know you’ll do right by me.
Let’s break down how warranties benefit both manufacturers and their customers, and the challenges that can cause headaches for both.
Why Warranties Matter: Customers vs. Manufacturers
Warranties are a key part of the manufacturer-customer relationship. For customers, warranties signal product reliability and offer protection from unexpected repair costs, especially for high-value equipment. And when warranties are handled well, it builds long-term trust.
For manufacturers, strong warranty programs can set a company apart in competitive markets. They’re also a key customer retention tool and a way to generate recurring revenue through extended coverage plans.
Just as importantly, warranty claims provide critical feedback on product performance and service needs. When captured effectively, this data supports better service planning and product design, which in turn improves product and service quality.
Customers Like Warranties Because...
- Peace of Mind
Protection against unexpected repair or replacement costs.
- Cost Predictability
Makes it easier to forecast operational expenses.
- Faster, More Reliable Service
Customers get quicker turnaround on repairs.
- Clear Terms, Clear Expectations
When well-managed, helps avoid confusion.
- Increased Trust
Standing behind your product builds loyalty.
- Custom Options
Some prefer the ability to add extended coverage.
- Better Ownership Experience
Positive service boosts satisfaction.
Manufacturers Like Warranties Because...
- Product Confidence
Warranties reflect quality and build trust.
- Competitive Differentiation
Used as a selling point in crowded markets.
- Customer Retention
Warranties encourage ongoing relationships.
- Recurring Revenue
Extended warranties and service contracts drive margin.
- Service Control
Manufacturers control repair quality and parts.
- Valuable Product Feedback
Claims highlight quality issues early.
- Brand Protection
Proper coverage helps avoid service disputes.
While warranties bring value, they also come with challenges that tend to fall into three key areas: lack of clarity, inefficiency, and cost exposure.
Warranties often come with complex terms that vary by product, asset type, or customer contract. When it’s not clear what’s covered, or when that information is scattered across disconnected systems, it creates frustration for both customers and internal teams. Add in slow, manual claims processes and approvals, and frustrations can further build.
Finally, without visibility into how warranties are being used (or misused), manufacturers struggle to understand the true cost of supporting their assets.
What Frustrates Customers
- Unclear Warranty Terms
Not knowing what’s covered leads to surprise denials.
- Slow Claims Process
Delays hurt uptime and production schedules.
- Limited Coverage
One-size-fits-all warranties don’t meet specific needs.
- Hidden Costs
Unexpected fees or exclusions create frustration.
- Paperwork Burden
Claiming warranty coverage often feels like a hassle.
- Low Visibility
Hard to tell which assets are covered or how long coverage lasts.
- Missed Expectations
Warranty promises don’t match real-world service.
- Delayed Resolutions
Waiting for claim decisions disrupts operations.
What Frustrates Manufacturers
- Complex Coverage Management
Tracking multiple terms across assets and customers is time-consuming.
- Administrative Overhead
Manual claim reviews and approvals slow down service.
- Warranty Abuse
Some customers overuse or manipulate warranty terms.
- Cost Uncertainty
Claims can create unpredictable financial exposure.
- Disconnected Systems
Lack of integration across ERP, CRM, and service systems.
- Lack of Insight
Limited data on warranty costs, trends, or asset performance.
- Customer Pressure
Internal teams feel pushed to “just fix it,” even when it’s not covered.
- Compliance Risk
Errors in honoring warranty terms can result in legal or brand damage.
The Opportunity: Tracking Warranty Terms, Claims, and Work Orders with Dynamics 365
Managing warranties well requires the right tools. Microsoft Dynamics 365 connects warranty data, service processes, and customer assets in one system. Check out the 4-minute demo below to see how:
- Warranty terms are applied automatically based on asset type or individual asset
- Claims can be created and routed for approval with automated notifications via Teams, email, or SMS
- Work orders process warranty-covered parts and services with correct pricing
- Claims approvers can act quickly within Microsoft Teams
- Costs associated with assets and warranties are visible and trackable
Wrapping It All Together
Warranties can either be a headache or a real advantage – it just depends on how they’re managed. If you want to learn more about how we can help with warranty management, reach out to us any time.